LA PORTE/ PHILADELPHIA, US: Braskem said that its board of directors has officially approved the final investment decision to proceed with the largest polypropylene (PP) production line in US.
Braskem will commit up to $675 million in investment capital towards the design and construction of the new facility which will be named Delta and will be located next to Braskem's existing production facilities in La Porte, Texas, US.
Construction is expected to begin mid-summer, with the final phase of main construction targeted for the first quarter of 2020.
With the engineering design phase well underway, the new production line will have a manufacturing capacity of 450 kilotons (kt), or the equivalent of approximately 1 billion pounds, per year.
The new line will represent additional production capacity of homopolymers, random copolymers, impact copolymers, and reactor TPOs, building upon Braskem's current polypropylene production plant in La Porte which has a production capacity of 354 kt annually and will continue operations. Today's announcement also builds upon the momentum of Braskem's recent launch of its new UTEC Ultra High Molecular Weight Polyethylene (UHMWPE) production plant located at the same La Porte site.
The construction of Braskem's new Delta PP production line is expected to positively impact economic activity in the region, employing approximately 1,000 development and construction workers to fully construct the facility. Upon final completion, the company expects the new line to bring an additional 50 Braskem permanent full-time jobs to the La Porte community.
“This new world-class petrochemical facility will bring important new North American production capacity to help us meet the growing demand from our clients, reaffirming our position as the leading producer of polypropylene in the Americas and the third largest in the world,” said Fernando Musa, CEO, Braskem.
“By increasing our production capacity in close proximity to customer demand, attractive feedstock as well as established export channels, we believe Delta will serve our clients well and offer an attractive return on our investment for our shareholders. This investment is a true vote of confidence in the future of Braskem and a testament to our commitment to meeting our clients' needs," added Musa.
© Worldofchemicals News
Read More: Braskem to build polypropylene plant in US; invests $675 mn
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